Trends and Best Practices in Global Shared Services

June 25th 2014
Trends and Best Practices
in Global Shared Services

PHIL SEARLE
CEO & Founder
Global/Americas
Tel: (408) 402-3008
philsearle@chazeypartners.com
Phil has more than 20 years of experience in Finance,
Shared Services, Technology and Outsourcing. Prior to his
current role, he was Group VP and CFO of Cendant TDS
International, which encompassed all areas of Finance
across four continents, including Decision Support,
Financial Planning & Analysis, Controllership and Financial
plus certain HR Shared Services.
Phil was granted O1 visa status by the US government in
2008 which resulted in him gaining accelerated Green Card
status in 2009 through the “Extraordinary Ability”
classification. This classification is for
“ability…demonstrated by sustained national or
international acclaim” and was based on Phil’s unique
experience in Shared Services and Outsourcing. Phil also
was issued a C10 visa by the Canadian federal government
in 2010; this visa is only granted where there is “significant
benefit to Canada" [R205(a) CEC C10].
Phil is a Chartered Accountant and has a BA Honors Degree
in Economics from the University of Exeter. He is a member
of Financial Executives International (FEI).
CHAS MOORE
Managing Director
North America (West)
Tel: (250) 469-4168
chasmoore@chazeypartners.com
Chas has 19 years of experience in business leadership,
management and Shared Services implementations. He
leverages his extensive experience in healthcare and
industry to help teams innovate effective and realistic
solutions for complex industries. Prior to his recent
assignments he was the Interior Health Business Support
Director for Corporate Initiatives leading Shared Services
implementations involving the Canadian healthcare sector.
Prior to the formation of Interior Health, Chas was the CFO
of one of the 18 predecessor organizations.
In addition to his Canadian assignments, Chas provides
subject matter and technical expertise to American clients
and holds a US work visa. He has extensive experience in
project management, business case development,
mentoring & coaching, and public speaking, including
facilitation at several international Shared Services events.
Chas is a Chartered Professional Accountant, Chartered
Accountant, and has a BSc Degree in Microbiology from the
University of British Columbia.
Introductions

Global Trends in Shared Services
Agenda

North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2014 5
General Trends in Shared Services (i)
• Shared Services and Outsourcing initiatives typically result in "cost savings of 20%-50% on
processes in scope” (Hfs-PWC report June 2012)
• "In today's business environment, nine out of every ten enterprises have shared services
and 97 percent manage outsourcing relationships". (Hfs-PWC report June 2012)
• Multi-process Shared Services much more a reality today
• Captive vs Outsource, On-shore vs Near-shore vs Off-shore
• Continued increase in scale and up the value chain in Shared Services (e.g. O2C, Reporting,
Policy)
• Technology options continue to grow (e.g. document management, approvals, user self-
service, ERP, open architecture, software-as-a-service, “cloud computing”, etc)
• Now much more end-to-end “wing-to-wing” process focused

• Data privacy and security a big issue
• Recession had the effect of bringing Shared Services to the Top Table. Less so
outsourcing which suffered significantly over this period. But what happens next?
• Politics around offshoring jobs has been an issue for years, but has not stopped the
trend (captive and BPO), although slowed for a while
• As well as need to manage costs and working capital, biggest concern in last couple of
years has been about needing visibility and control – the “classic” centralized vs
decentralized dichotomy
• Multi-functional Shared Services now really starting to happen after years of this being
in the textbooks
• Large scale, multi-tower outsourcing simply hasn’t happened, despite what many
predicted. However, there is some movement back to try to achieve this again.
• Selective outsourcing (which actually never went away) is the trend
General Trends in Shared Services (ii)

• “Innovative outsourcing” has not happened? “Lift and Shift” did. Partly due to client
requirements. However, there is a new emphasis on this.
• “Quick fixes” are not the solution. Right direction, adapted to each organization’s
unique requirements
• Global Business Services growing and developing. Also more focused on being a key
support for enablement and delivery of business strategic goals
• “Big data” and Data Analytics now a key “outut” from Shared Services/Business Services
– feeding the business the data and information to support growth.
• Ultimately this is “all about the business”. This, despite its name sometimes, is not an
“industry” but more of a service delivery option – a means to an end
General Trends in Shared Services (iii)

0%
100%
%ofBaselineCosts
Time
Maturity 5+ years
• Innovation – really customer focussed, end-to-end, six sigma processes
• Automation – ERP, web-enabled, self-service,
• Value – really customer focussed. Supporting achievement of business strategic goals
• Scope – multi process/multi functional
• Further cost reduction - unlimited opportunity through paperless, virtual service centre, global
low cost alternatives, strategic outsourcing
General Trends in Shared Services (iv)
Phases of Shared Services

General Trends in Shared Services (v)

• 100% of the top quartile companies worldwide use Shared Services
• Hackett study found that Shared Services has proven to be a business strategy for controlling costs,
quality and risk.
• 90% of Fortune 500 companies use Shared Services
• “In today's business environment, nine out of every ten enterprises have shared services and 97
percent manage outsourcing relationships". (HfS-PWC report June 2012)
• 60% of companies deliver Cost reduction greater than 35%
• Savings range between 20% and 90%
• Shared Services is THE key enabler for world class functional performance
• Supports business transformation across all functions and processes
General Trends in Shared Services (vi)

Shared Service Maturity: Country/Regional
0
1
2
3
4
5
6
7
8
9
10
US Canada UK Europe Latin America
MaturityIndex
Maturity of Shared Service Centers
Private
Public

Shared Service Maturity: Country
0
1
2
3
4
5
6
7
8
9
10
MaturityIndex
Maturity of Shared Service Centers
Private
Public

Agenda
How is Shared Services Evolving?

Scope Expansion & Value
Creation
Multi-Functional Shared
Services
Global Business Services Integrated Business Services
Technology Enablers BPO Trends
How Is Shared Services Evolving?

Shared Services Evolution - Scope Expansion

The Potential Scope of Shared Services
FINANCE
•Accounts Payable
•Billing/Accounts
Receivable
•General Ledger
•Consolidations
•External
Reporting
•Planning and
Budgeting
•Treasury/Cash
Management
•Internal Audit
•Tax
•Foreign Exchange
•Business Support
Analysis
•Financial
Reporting
•Project
Accounting
•Cost Accounting
•Lockbox Services
•Records
Management
•International
Accounting
HR
•Payroll
•Travel & Expense
•Compensation
Administration
•Benefits
Administration
•Records
Management
•Training &
Development
•Relocation
Services
•Evaluation
Planning/Review
•Policies &
Procedures
•Labor Relations
•Recruiting/New
Hire On-boarding
•Headcount
Reporting
•Succession
Planning
•Employee
Recognition
System
IT
•Desktop Support
•Application
Maintenance
•Telecommunicati
ons
•Hardware &
Software
•Application
Development
•Data Center
Operations
•Standards
•Technology
Planning &
Development
•Acquisition
Support
•IT Security
CUSTOMER
SERVICE
•Call Centers
•Credit &
Collections
•Order
Management
•Returns
Processing
LEGAL/CORPO
RATE AFFAIRS
•Travel Services
•Real Estate
•Facilities/Site
Services
•Fleet
Management
•Security
•Communication
Services
•Environment,
Health & Safety
•Regulatory
Compliance
•Public
Affairs/Media
Relations
•Litigation Support
& Coordination
•Insurance
•Mailroom
•Grants
Management
•Health Clinics/Day
Care Centers
•Corporate Brand
Compliance
•Engineering
•Subsidiary
Management
•Emergency
Management
PROCUREMENT SUPPLY CHAIN
•Transportation &
Logistics
•Strategic Sourcing
•Warehousing
•Inventory
Management
•Vendor
Management

Moving Up The Value Chain
Transactional/Administrative
• General Accounting
• Fixed Assets
• Accounts Payable
• Inter-company Accounting
• Billing
• Collections
• Accounts Receivable
• T&E Management
• Claims Processing
Professional/Technical
• Corporate Purchasing
• Revenue Accounting
• Statutory Accounting
• Credit
• Cash Management
• Trade Compliance
• Tax Compliance
• Month-end Close Reporting
Example for Finance

What Does “Multifunctional” Shared Services Mean?
Multifunctional Shared Services

What Are The Possible Routes to Multifunctional?
While “multifunctional” shared services has been recommended in the textbooks for decades, in reality
the experience has often been single functional shared services that has been the initial way forward
for many enterprises.
As shared services has proved its worth in practice enterprises have often then sought to expand scope
and “bolt on” additional service lines (both up the value chain and into new functions). This has seen a
more “evolutionary” move to multifunctional shared services than what might be called “big bang”,
although more “big bang” examples today (e.g. in Public Sector).
But the pace has varied quite considerably, with some enterprises starting with a single function but
then very quickly moving to a more multifunctional structure.
True Multifunctional has often been supported by/reflected in the establishment of a “Global Business
Services” or “GBS” function or Business Unit

A KPMG/HfS Research survey last year indicated that 60% of organizations with “mature operational service
frameworks” are planning to move to a Global Business Services (GBS) model, while the Shared Services &
Outsourcing Network’s 2013 membership survey found that the single most important future potential of
Shared Services was “shifting to a GBS model.”
START WITH “BUSINESS SERVICES” - THEN GO “GLOBAL”
While the principles of “Global” services still have a lot in common with traditional Shared Services,
GBS takes services delivery to another level by:
1. shifting to “business services”, which implies a more holistic support of the organization
2. leveraging “global” – as in capability, process ownership, delivery strategy, and footprint
3. unleashing the power of analytics
Global Business Services (GBS)
MULTIFUNCTION OR SINGLE FUNCTION?
Hackett Group (2012 survey of SSON members) found that finance is the most
common function in today’s GBS, with 84 percent of survey participants reporting
that their GBS has finance services with Human Resources being the next at 45
percent of the companies surveyed.

Challenges to Moving Functions into
a GBS Environment
Challenges
Inconsistent
approach to
customer
service
Attracting and
maintaining key
employee
talent
Not having
common cross
functional tools
and approaches
Functional silos
for processes
execution
Lack of a shared
center
infrastructure
across functions
No cross-
functional
process
management

SSOs are moving from the traditional shared service function
based models to become
independent, end-to-end service businesses.
Integrated Business
Services
• Putting processes into
the context of overall
business optimization
• End-to-end process
ownership
• Capable of handling
any “unique” customer
requirements within a
generally very
standardized end-to-
end process.
End-to-End Process
Standardization
Operational Excellence
Strategic Business
Support
End-to-End Process
Standardization
Operational Excellence
Integrated Business Services
Traditional Shared Services Integrated Business Services

Technology Enablers
Today’s ERP systems can
build a single business
platform that can
leverage operational
efficiency in an SSO
Technology has provided
for process automation,
with examples including
electronic invoicing,
document management,
workflow, automatic
matching and payment
allocation tools,
automated
reconciliations and user
self-service
Cloud Computing has
been embraced by
consumers across the
globe using email and
other IT services that are
hosted on servers
globally
Social media may offer
SSOs a way to increase
collaboration with
customers, both
internally and externally
Leveraging new technologies to improve SSO operations and improve customer service

BPO Trends
“Lift & Shift” rather
than “Shift & Lift”
Hybrid models are becoming more
commonplace with a mixture of
internal Shared Services supported
by third party BPO provision
Re-mapping service delivery locations:
• Many of the easily offshorable jobs have already gone.
• Additionally the number of jobs that might have been offshored
has been reduced by productivity improvements.
• Cost advantage to off-shoring is trending downwards. For
example, cost of employees in India was 80 percent less than
USA, and it is now 30-40 percent and narrowing.
• Employee turnover in the off-shoring companies has historically
been quite significant, in part due to some of the work being
repetitious

Agenda
Critical Success Factors

Client
• Service orientation in place
• Structured way of dealing with customers
• Customer satisfaction levels understood
• SPAs in place
• Reality versus perception
• Account management
Process
• Processes documented
• Standardized, controlled & repeatable activity
• Recharging methodology
• Benchmarking – internal/external
• Metrics: Control Based; (ii) Efficiency &
Effectiveness
Technology
• ERP implemented
• Document Scanning Solution
• Workflow
• Automated Payments
• Elimination of Side Systems
• Self services tools
• Automated Score Cards
People
• Skilled Leadership in place – do not compromise on
competencies
• Team shape & stability – process shaped/spans of
control/staff – perm v temps
• Team members – culture, values & behavioral competencies
assessed
• Team morale, reward & retention
• Working environment conducive to team working
Typical Transformation Focus: Technology & Process,
sometimes on the People…but Client-focus is missing

Corporatization/Centralization:
• Users of service must accept corporate
direction
• Cost containment is prioritized over
performance
Transformed Shared Services:
• If consumers of service are unhappy, they’ll
leave
• Performance is prioritized over cost
containment
No Customer, No Transformation
Scenario: “Management decides to reduce the hours of their help desk for their
information technology services.” What are the key drivers behind the decision?
If your organization is not focused on the client, you either:
Do not have Will not
transformed or have transformation
Shared Services for long (it will fail)

The same service characterisic can be seen as an improvement or loss,
It depends on your perspective
To shape and influence this perspective, you need to a structured way to
manage your client relationships: the Client Interaction Framework
Intangibles are as Important as Tangibles
What is potentially better:
• Cost savings
• Standardized processes
• Controllership
• Common system
• Consistent process metrics
• Accessibility and quality of information
• Customer service management
• Quality in the process
What is potentially worse:
• Slow response and recovery
• Inflexibility
• Risk of client working for SSO
• Lost decision rights
• Additional bureaucracy
• Disconnection from the business
• Lack of local personal support
• Local desire to “touch everything”

Agenda
Client Interaction Framework

Client Interaction Framework (CIF)
Account
Management
•SSO to client; via reporting,
interaction, escalation &
communication
Client Contact
Management
•Client to SSO; to manage
and resolve queries and
drive learning/improvement
Service Partnership
Agreements
•SPAs are 2-way agreements
clarifying both SSO services
and client inputs
Client
Feedback
•Client satisfaction
continuously monitored
both informally and formally
Continuous
Improvement
•Mechanisms to identify the
areas for improvement and
to develop solutions
Process Control
Database
•Documents end-to-end SSO
processes; highlights
activity of both SSO & client
Performance
Measurement
•Comprehensive KPIs,
measures and metrics
framework, SSO & client
Performance
Reporting
•Process performance will be
reviewed monthly by SSO
and client
Recharging
Methodology
•Define basis for charging for
SSO services to turn
consumers into clients

About Chazey Partners…

Chazey Partners is a practitioners-led global management
advisory business. We bring together a unique wealth of experience,
empowering our clients to strive for world class excellence through
Business Transformation, Shared Services &
Outsourcing, Technology Enablement, Process
Enhancement and Corporate Strategy Optimization
We have operationally delivered and consulted numerous programs globally, over
the last 20 years, in the US, Canada, Latin America, UK, Ireland, Continental Europe,
India, Singapore, Australia, China, Middle East and Africa
Our end-to-end capability offers advice, guidance and implementation expertise,
covering strategy setting and business case production, to programs management,
implementation and process optimization
Who We Are · Overview

Who We Are · Services Portfolio
FINANCE & ACCOUNTING
●
HUMAN RESOURCES
●
INFORMATION
TECHNOLOGY
●
PROCUREMENT
●
TRAVEL & EXPENSES
●
CONTACT CENTRES
Expertise In Public Sector & Private Sector
INVENTORY & LOGISTICS
●
STAT & TAX COMPLIANCE
●
SUPPLY CHAIN
●
LEGAL SERVICES
●
FACILITIES MANAGEMENT
●
MARKETING BACKOFFICE
BUSINESS
TRANSFORMATION
−
SHARED SERVICES
& OUTSOURCING
−
TECHNOLOGY ENABLEMENT
−
OPERATION EMPOWERMENT
−
CHANGE MANAGEMENT
−
LEAN SIX SIGMA
Functional Breadth of
Experience
Other Supporting
Services

Why Chazey Partners · Uniqueness
Effective Diagnostics & Unique Methodology
Hands-On Approach of Seasoned Practitioners
Exceptional Project Payback
Having “lived and breathed“ a great number of projects, we understand what it takes to
be successful. Our hands-on approach forms the cornerstone of our practice
Independent of Other Providers
Our solutions are unbiased and personalised, and are coupled with our value
enriching thought-leadership
Blending more than two decades of experience to create a unique diagnostic based
methodology. This allows us to identify critical gaps, strength quotient, and materialize feasible
opportunities
Liberating budget for core services, driving highly competitive ROI,
and compelling transformation timelines

Global Reach · Local Expertise
GLOBAL REACH
As one of the world’s leading niche management
consultancy firms specialised in Shared Services &
Outsourcing, we have offices located in nine major
countries around the world, including USA, Canada,
Argentina, Mexico, UK, Ireland, Cyprus, Singapore, and
South Africa.
LOCAL EXPERTISE
Hands-on experience in 100+ countries, influenced key
industry practices in diversified fields.
Our Leadership Team Exemplifies The Combined Value Of Global Reach And Local Expertise

Who We Have Worked With
OUR CLIENTS
WHERE HAVE WE COME FROM

Leverage Our Experience for Your Success

Contact us
www.chazeypartners.com
enquiries@chazeypartners.com

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